A largely down day on increased volume with the DOW closing on 8000. Look out below next week? Or do we just postpone the inevitable.
The Q's gapped slightly up this morning, tagged R1 on a gravestone doji-type candle and sold off all the way down to S1 before chopping around and finally finding support at S2. The bottoming candle was a hammer (two hammer's actually) while a re-test of the bottom was met with a bullish momentum divergence and a tweezer bottom candle pattern. Our target at this point is Vwap which we blew by until a hanging man led the way back down to S2 again.The SPY was a little more straightforward on the 15-min. chart to short the pullbacks to the 20-EMA in this short-term bear trend.I was watching UNG for follow-through as I mentioned in yesterday's post, and well it sorta got follow-through, just in the opposite direction, erasing all of the previous day's gains.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at email@example.com
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